// Two major Chinese iPhone sellers slash the prices of the iPhone 8, 8 Plus and XR models
// It follows Apple’s rare profit warning, which it blamed on poor Chinese sales
// Apple receives the majority of its iPhone sales from third-party retailers in China
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Major Chinese iPhone re-sellers including JD.com and Alibaba-backed Suning have slashed their prices by more than a fifth in an attempt to rejuvenate sales in the region.
Earlier this month Apple issued a shock profit warning revealing that its third quarter figures were due to come around 10 per cent below previous expectations, attributing the drop to dwindling sales across China.
In response to the falling sales the price of the iPhone 8, iPhone 8 Plus and iPhone XR have been cut by as much as 22 per cent on JD.com and Suning, two of China’s largest retailers.
According to analysts at market research firm Canalys, Apple makes the majority of its iPhone sales in China through third-party licenced re-sellers, as opposed to its own stores or official website.
These third-party retailers are understood to have been granted far more freedom in setting their own price points since the release of the iPhone X in 2017, one of the first handsets to break the $1000 mark.
While Apple’s own official channels have prices fixed by its US headquarters, re-sellers can set prices in co-ordination with Apple in China.
Since announcing the profit warning, Apple has ordered its suppliers to reduce production levels of its new iPhone range including the XS, XS Max and XR models by 10 per cent, marking the second time in as many months it slashed its planned manufacturing numbers.